Medical Bill Relief
If you’re the type of person who has historically been responsible with debt and money, but medical bills are now jeopardizing your financial situation, you are not alone. Medial Bill Relief is necessary.
Many people who have made sound financial decisions throughout their lives and been careful not to overextend themselves with credit sometimes find themselves facing insurmountable medical debt. As a matter of fact, medical bills are the most common reason people file for bankruptcy.
The problem with medical bills is they can occur for anyone at any time. No matter how careful you are caring for your health and how much effort and money you put into health insurance coverage, you can still end up with a mountain of medical bills. Even a single overnight stay in the hospital can result in tens of thousands of dollars in medical costs, leaving the average person helpless to meet their obligations.
Making matters worse, many people face astronomical debt in what is otherwise the worst phase of their life. After all, serious medical bills come from serious health issues, including severe illnesses or medical emergencies. In the blink of an eye your life can change and in addition to the health challenges you now face, you’re also dealing with medical bills arriving in the mail on a daily basis.
So what should you do if medical bills are causing financial strain? Is not paying the cost of medical care ever an option, and if you can’t afford to pay a medical bill, what is going to happen?
The best thing you can do if you have medical debt is to understand what your options are.
Dealing with Medical Bills
Despite the anxiety and frustration you’ll likely feel when you have medical bills you can’t afford, you have options. It’s important to not ignore your medical debt because it will only get worse. Even if you can’t afford to pay your bills, there are still things you can do to keep the situation under control.
Begin by reviewing any medical bills you receive from the hospital and from your doctors. Make sure they are accurate and contact your insurance provider to determine if any services or treatments should have been covered. Mistakes happen and insurance companies are sometimes reluctant to pay, even if they are responsible for the cost of care. You need to be an advocate for your medical care and the costs associated with it.
Once you know the medical bills you’re receiving are accurate, speak to someone about a payment plan. Many hospitals and doctors are willing to accept payments, even if you are paying just a small amount over the course of many years. They know that it’s better for everyone involved to arrange a payment plan and it helps them avoid the expense and time it takes to deal with debt collectors and the legal system.
Debt Relief and Settlement
If a payment plan is impossible or you’ve let your medical bills go beyond arranging a payment plan, you still have options. Debt relief programs can help you organize and consolidate debt so it’s easier to afford your payments. The programs won’t fix everything but they are worth a try if you’re feeling overwhelmed with medical debt. Just be sure to work with a reputable program that isn’t going to costs you more in the long run. Scammers are out there, so investigate carefully before committing to a program.
Another option that allows you to take care of medical debt is to arrange a settlement with the billing company. This means you “pay off” the debt, but you do not pay the total amount owed. It will show as “paid in full” on your credit report, but you will have only paid a portion of the debt.
If you believe you might be eligible for a settlement, you can contact the billing department of the doctor or hospital directly, or speak to an attorney about arranging a settlement for you.
Finally, you might consider filing for bankruptcy if your hospital bills are too much to handle. Many people opt for bankruptcy after their medical debt accumulates to the point that they will never be able to afford to pay it. This is also an option if you have medical and other debts that are in collections or that have turned into a judgement against you.
Medical Bankruptcy Might Be Your Best Option
If you’ve worked hard your entire life to maintain good credit, you might be reluctant to use bankruptcy as a tool to resolve your medical bills. This is understandable, but in many cases, bankruptcy might be your best option, even if it will damage your credit.
Consider this: you have incurred medical debt and the medical provider is unwilling or unable to arrange a settlement or payment plan. They also intend to pursue the debt through any means available to them. Your credit is going to take a hit and it’s going to continue to suffer over time. It’s also possible your wages could be garnished or other debt collection actions might occur that could send you into a financial spiral.
When Medical Bills are Overwhelming
If this sounds like something you’re experiencing, bankruptcy could be your best option because it offers a resolution. Yes, it will damage your credit, but once you’ve filed you can begin to repair your credit. By postponing filing, you’re allowing the problems to continue to damage your credit, which is worse than taking action.
Both Chapter 7 and Chapter 13 bankruptcies can help you deal with medical bills. Chapter 13 creates a repayment plan that helps you manage your medical and other debts. Chapter 7 bankruptcy can eliminate the medical debt all together. An attorney can help you determine which of these two options you qualify for and which is best in your circumstances.
Medical bills can leave you feeling desperate and as if your financial situation will never get better. For many, the price of their good health barely seems worth it once they are dealing with debt collectors and endless bills. Bankruptcy can help. To learn more about how to deal with medical bills or to speak to someone about filing for bankruptcy, contact us at 1.800.220.4318.